Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-05-21
IN PRoFIr-sHAR1NG


IN PROFIT-sHARING
\ New York clothing house has tried
proft-sharing for one year, and with sue
cess in all respects, employers and employees
being mutually pleased Mayor Hewitt, of
New York, is a member of a great iron
manufacturing firm. Some years ago Mr..
Hewitt was convinced of the economy and
general bezefts of proft-sharing, but
did not then, when he should, in
augurate the system. But he has
now made an offer to the employees,
the main features of which are that
they shall take charge of the works, elect
their own officers and managers, adjust the
working system, and go on with the indus
try, guaranteeing to the owners of the
plant and good will per cent, after due
margin of reserve for repairs and the keep
ing of the works up to the best standard of
excellence. But an element in the scheme
is the fact that for some years the works
have not yielded good profit to the firm,
and for recent years have suffered loss, still
the wages have not been decreased. When,
therefore, the wage-winners demand an in
crease of pay, the firm say to them: Take
the business, and see for yourselves that
we have not in fact drawn from the bust
ness as good wages as the employees. But
we believe the business will yield living
to you under the profit-sharing plan, which
will conserve economy and augment your
energy.
Nearly all the employees are members of
the Knights of Labor, and they have taken
time to consult with the Order before re-
spending to the offer. If the men accept
the plan, Mr.. Hewitt believes that perhaps
they may develop from the ex-
pertinent a cooperative scheme directly
in line with the system Senator Stanford
has recently advocated. Indeed, the offer
of Cooper, Hewitt & Co. is very near CO.
operation already. 1t amounts to very
little more than renting to body OF
skilled workers a manufacturing plant, the
profits of which may enable them in good
time to purchase the establishment.
But the offer will have an especially
weighty influence in one particular respect
1t will open up to them the employer side
Of the labor question, and expose to them
all the inyolvements of that class
and all that is required of it to
successfully conduct a great business
They will discover the exact relation be-
tween profits and wages, and losses and
wages just what is involved in paying
employees fixed sum regardless of the
| fluctuations of trade and commerce, and
in this respect the teaching will be of the
highest value to skilled workers, and tend
to disabuse the minds of employees OF
many gross errors.
In proft-sharing generally the proprie-
| tor retains the position of employer, as
illustrated by the Wannemaker expert
ment in Philadelphia the Weinstock &
Lubin successful experiment in Sacra-
mento the demonstrated feasibility of the
system by the Nelson manufacturing con-
| Germ of st. Louis; the Bon Marche of
Paris; the famous establishment of III.
Goodin, at Guise France; the Hazards
Wooden Mills, of Rhode Island the Pills
bury FIGURING Mills, of Minneapolis the
Pape Betting Company, of New Hampshire;
Allen & Co., and the Hoffman & Billings
Manufacturing Company, of Wisconsin.
But under the Cooper, Hewitt & Co.'S
offer the employers absolutely withdraw,
remaining, if at all, in the capacity of
proft-sharers with the Others their rela-
ton as lessons being distinct from that of
employer, because the management and re-
sponsibility all passes over to the workers.
In another column we publish an ac-
count of an instance of dividing the profits
of labor, as exemplified in the experience
of firm in Auburn, Me. The house en-
ploys 700 men, women and children. One
year ago the firm proposed to the workers
to set aside fair amount for interest on
the capital invested, for risks, mainte-
nance, depreciation, etc, and then to di-
vide any remaining profit between en-
ployers and workers, in the proportion
that the labor bears to the cost of the
goods. The firm retained control, but a
committee of the workers was permitted
to inspect the business and have knowledge
of the details, in order that they could re-
port that good faith had been kept. The
proposition was accepted, but with doubt
ings and suspicion. Last month, the year
having expired, the workers assembled to
learn the result The committee reported
that the firm had dealt fairly and managed
honestly, and rebuked the Incredibly with
which the wage-winners had received the
proposition. 1t then reported that in adj
dition to the wages paid for the year, and
which had been kept up to the best stand
ard, there was due the workers dividend
VI icUl BSl SSiit'3 81 lllc ARTISANS re-
ceived about $4,000 in addition to their
wages. 1t was also reported by the COM
mittee that the dividend would have been
larger had the faith of the wage-winners
been greater, by which economy would
have been more conserved and mate
rials used with less waste This is but one
instance Of what labor and capital, when
working in harmony, may accomplish, and
indicates what greater possibilities there
are for wage-winners under the broader
and better system-co-operation.
"a GLORIOUS ENACTMENT"
Two of the largest manufactures in the
West failed in Chicago the other day,
and commercial and financial columns